Critical Analysis of Decentralization Theory in the Context of Local Government: A Literature Review
This article examines multiple elements that impact the outcome of decentralization in the context of local governance. The success of decentralization is heavily contingent upon the robustness of regional institutions, the political dynamics at play, and the unique attributes of the country undertaking the reform, as indicated by a comprehensive analysis of existing literature. Efficient decentralization necessitates well-defined institutional procedures, political solid and civil determination, enhancement of capabilities, and democratic governance. Nevertheless, notable obstacles include the possibility of heightened corruption, involvement from local politics, and discrepancies between the legal framework and real-world implementation. Hence, meticulous planning, contextual adaptations, and vigilant supervision are vital to guarantee accountability and effectiveness in executing decentralization. A literature review conducted with consistent and suitable methodological approaches is a form of qualitative research, specifically within the realm of literature study. This is employed inductively to prevent the emergence of more inquiries. The rationale behind undertaking qualitative research lies in its inherent exploratory nature. A comprehensive analysis is conducted in the part dedicated to the relevant literature or literature review. The research findings indicate that decentralization is an intricate and thorough approach whose effectiveness heavily relies on each nation's social, political, and economic circumstances. Robust and responsible local institutions guarantee high-quality public services and mitigate corruption. Decentralization strategies necessitate customization to suit the unique circumstances of each country since a uniform strategy will not be effective universally. The local political dynamics heavily influence the success of decentralization. The effects of decentralization can be influenced by cultural identities and ideological differences, which can affect community trust and involvement and potentially lead to exclusion and instability. Implementing decentralization frequently encounters substantial obstacles, such as the possibility of heightened corruption and political instability.
Atisa, G., Zemrani, A., & Weiss, M. (2021). Decentralized governments: local empowerment and sustainable development challenges in Africa. Environment, Development and Sustainability, 23, 3349–3367.
Bae, Y., Joo, Y.-M., & Won, S.-Y. (2016). Decentralization and collaborative disaster governance: Evidence from South Korea. Habitat International, 52, 50–56.
Bahl, R. W., & Linn, J. F. (1987). Intergovernmental fiscal relations in developing countries.
Bodó, B., Brekke, J. K., & Hoepman, J.-H. (2021). Decentralisation: A multidisciplinary perspective. Internet Policy Review, 10(2), 1–21.
Bucci, V., Ferrara, G., & Resce, G. (2024). Local government spending efficiency and fiscal decentralization: evidence from Italian municipalities. Applied Economics, 56(5), 599–614.
Bukharskiy, V., & Lavrov, A. (2021). Intergovernmental Relations and Public Administration: Opportunities and Limitations of Decentralization. Public Administration Issues, 2, 126–153.
Canare, T. (2021). Decentralization and development outcomes: What does the empirical literature really say? Hacienda Publica Espanola, 237, 111–151.
Cao, Z. (2018). Centralization and decentralization of power structure: A theory of ruling risks and empirical evidence from Chinese history. Chinese Journal of Sociology, 4(4), 506–564.
Channa, A., & Faguet, J.-P. (2016). Decentralization of health and education in developing countries: a quality-adjusted review of the empirical literature. The World Bank Research Observer, 31(2), 199–241.
Chhatre, A. (2007). Accountability in decentralization and the democratic context: theory and evidence from India.
Christia, A. M., & Ispriyarso, B. (2019). Desentralisasi fiskal dan otonomi daerah di Indonesia. Law Reform, 15(1), 149–163.
Chulu, J. (2015). Decentralization: Is It a Blue Print for Local Governments in Developing Countries? Available at SSRN 2701497.
Colombo, A. (2020). Why do local institutions matter? The political economics of decentralisation 1. Reflets et Perspectives de La Vie Economique, 59(1), 115–130.
Conteh, F. M. (2016). The promise and reality of decentralization: a critical appraisal of Sierra Leone’s primary health care system. Critical African Studies, 8(3), 350–369.
Crook, R., & Manor, J. (2018). Democratic decentralization. In Making Development Work (pp. 83–104). Routledge.
Daemane, M. M. M. (2012). Prospects and challenges of decentralization for sustainable development through Developmental Local Governance (DLG): the experience of smaller nations. Journal of Sustainable Development in Africa, 14(8), 199–227.
Devas, N. (1997). Indonesia: what do we mean by decentralization? Public Administration and Development: The International Journal of Management Research and Practice, 17(3), 351–367.
Dick-Sagoe, C. (2020). Decentralization for improving the provision of public services in developing countries: A critical review. Cogent Economics & Finance, 8(1), 1804036.
Elliott, F. (2022). The advantages of decentralized government from the viewpoint of Public Service Innovation. Journal of Management and Administration Provision, 2(3), 65–72.
Eprianto, I. (2023). Literature Review: Factors Affecting The Performance Accountability Report of Government Agencies (LAKIP) Local Government in Indonesia. Accounting and Finance Studies, 3(1), 1–23.
Erkoreka, M., & Hernando‐Pérez, J. (2023). Decentralization: A handicap in fighting the COVID‐19 pandemic? The response of the regional governments in Spain. Public Administration and Development, 43(2), 129–140.
Faguet, J. P. (2014). Decentralization and governance. World Development. https://www.sciencedirect.com/science/article/pii/S0305750X13000089
Fard Bahreini, A., Collomosse, J., Seidel, M.-D. L., Sotoudehnia, M., & Woo, C. C. (2021). Distributing and Democratizing Institutional Power Through Decentralization. Building Decentralized Trust: Multidisciplinary Perspectives on the Design of Blockchains and Distributed Ledgers, 95–109.
Fauzi, A. (2019). Otonomi daerah dalam kerangka mewujudkan penyelenggaraan pemerintahan daerah yang baik. Spektrum Hukum, 16(1), 119–136.
Fauziyah, H. F. (2020). Kontribusi Otonomi Daerah Terhadap Eksistensi Pajak Daerah. Jurnal Rechten: Riset Hukum Dan Hak Asasi Manusia, 2(1), 21–27.
Fossati, D. (2023). When conservatives support decentralization: The case of political Islam in Indonesia. Regional & Federal Studies, 33(2), 209–233.
Garman, C., Haggard, S., & Willis, E. (2001). Fiscal decentralization: A political theory with Latin American cases. World Politics, 53(2), 205–236.
Hendratno, E. T. (2009). Negara Kesatuan, Desentralisasi, dan Federalisme. Graha Ilmu.
Hoesein, Z. A., Arifudin, A., & Rahayu, S. D. (2022). The Effectiveness of Decentralization Policy in Local Government Administration. Jurnal Akta, 9(2), 242–259.
Hutchcroft, P. D. (2001). Centralization and decentralization in administration and politics: assessing territorial dimensions of authority and power. Governance, 14(1), 23–53.
Kauhanen, A., Maczulskij, T., & Riukula, K. (2020). Heterogeneous impacts of the decentralization of collective bargaining.
Kessy, A. (2013). Decentralization and citizens’ participation: Some theoretical and conceptual perspectives. The African Review: A Journal of African Politics, Development and International Affairs, 215–239.
Klibanoff, P., & Poitevin, M. (2022). A theory of (de) centralization. Journal of Public Economic Theory, 24(3), 417–451.
Kopańska, A. (2018). Partial fiscal decentralization and local government spending policy. Financial Internet Quarterly, 14(3), 21–31.
Lockwood, B. (1998). Distributive politics and the benefits of decentralization. University of Warwick, Department of Economics.
Lu, S., & Wang, H. (2022). Limited decentralization: Understand China’s land system from the perspective of central-local relation. Land, 11(4), 517.
Malysheva, N. V. (2012). Main features of Russia’s forest management system. In The Politics of Decentralization (pp. 229–237). Routledge.
Mangaliso, M. P., Alves, J. C., Knipes, B. J., Osorio, A. E., & Mangaliso, Z. A. (2010). Culture as the Context of Environmental Uncertainty, Structural Decentralization, and Strategic Significance of Information: A Three Country Comparison. Structural Decentralization, and Strategic Significance of Information: A Three Country Comparison (November 8, 2010).
Matei, A. I., & Popa, F. M. (2010). Impact of decentralization on the corruption phenomenon. Selected Papers in Nemec, J., Peters, GB (Eds), 259–270.
Mohammed, A. K. (2016). Decentralization and participation: theory and Ghana’s evidence. Japanese Journal of Political Science, 17(2), 232–255.
Morales, A., Letelier, L., & Platz, D. (2017). Decentralization and local government financing. LEADERS, 46.
Mudalige, P. W. (2019). The discussion of theory and practice on decentralization and service delivery. European Journal, 15(14), 115–135.
Mulia, R. A. (2022). Systematic Literature Review: Analisis Tren dan Tantangan Dalam Perkembangan Desentralisasi di Indonesia. Jurnal Ilmiah Ekotrans & Erudisi, 2(2), 49–61.
Noor, M. (2012). Memahami Desentralisasi Indonesia. Yogyakarta: Interpena.
Oates, W. E. (2006). On the theory and practice of fiscal decentralization.
Obaoye, O. S. (2016). Impact of Decentralization Reforms on Public Service Delivery at the Local Self-Government. Šiaulių universitetas.
Odoom, D. (2016). Conceptualizing decentralization: Reflecting on some existing literature.
Olum, Y. (2014). Decentralisation in developing countries: preconditions for successful implementation. Commonwealth Journal of Local Governance, 15, 23–38.
Omala, M. A., & Aglanu, L. M. (2020). Power dynamics in forest governance decentralization: the case of Kenya. International Forestry Review, 22(2), 225–240.
Petak, Z. (2011). Politics of decentralization policy: Explaining the limited success of the Croatian case after 2001. Politička Misao: Časopis Za Politologiju, 48(5), 72–84.
Ponce-Rodríguez, R. A., Hankla, C. R., Martinez-Vazquez, J., & Heredia-Ortiz, E. (2018). Rethinking the political economy of decentralization: How elections and parties shape the provision of local public goods. Publius: The Journal of Federalism, 48(4), 523–558.
Rahayu, A. S. (2022). Pengantar Pemerintahan Daerah: Kajian Teori, Hukum dan Aplikasinya. Sinar Grafika.
Robinson, M. (2007). Does decentralisation improve equity and efficiency in public service delivery provision? IDS Bulletin, 38(1), 7–17.
Rondinelli, D. A. (2017). Decentralization and development. In International development governance (pp. 391–404). Routledge.
Semmerling, A., Paczoski, A., & Cirella, G. T. (2022). Decentralization and tax independence in OECD countries: GDP per capita analysis from 1995–2018. Journal of Banking and Financial Economics, 1 (17, 42–59.
Shapiro, A., & Koren, A. (2012). Analyzing and critiquing the concepts of professional autonomy and accountability through the prisms of decentralization and constructivist theory. International Journal of Educational Reform, 21(4), 224–237.
Siallagan, D. A. F., & Siregar, G. (2023). Peran Pemerintah Daerah Dalam Penegakan Peraturan Daerah Agar Terwujudnya Pemerintah Daerah yang Baik (Good Government). Jurnal Ilmu Pendidikan Dan Sosial, 2(2), 231–239.
Simanjuntak, K. M. (2015). Implementasi kebijakan desentralisasi pemerintahan di Indonesia. Jurnal Bina Praja: Journal of Home Affairs Governance, 7(2), 111–130.
Sjamsuddin, S., & Noor, I. (2012). Decentralization: a question for developing countries. Viešoji Politika Ir Administravimas= Public Policy and Administration/Mykolo Romerio Universitetas, Kauno Technologijos Universitetas. Vilnius: Mykolo Romerio Universitetas, 2012, t. 11, Nr. 1.
Sujarwoto, S. (2017). Why decentralization works and does not works? A systematic literature review. JPAS (Journal of Public Administration Studies), 2(1), 1–10.
Sutiyo, Maharjan, K. L., Sutiyo, & Maharjan, K. L. (2017). Decentralization: Potential and Challenges for Rural Development. Decentralization and Rural Development in Indonesia, 13–26.
Tacconi, L., Siagian, Y., & Syam, R. (2006). On the theory of decentralization, forests and livelihoods.
Teng, Y., & Tsang, K. K. (2024). Educational decentralisation and students’ academic achievement: a cross-cultural analysis. Educational Studies, 50(3), 317–340.
Toubeau, S., & Wagner, M. (2015). Explaining party positions on decentralization. British Journal of Political Science, 45(1), 97–119.
Treisman, D. (1999). Political decentralization and economic reform: a game-theoretic analysis. American Journal of Political Science, 488–517.
Trisnaningsih, S., & Ariadi, D. (2022). Literature Review: Decentralization Analysis in Improving Managerial Performance. Journal Research of Social Science, Economics, and Management, 2(5), 884–888.
Uddin, N. (2017). Empowerment through decentralization: conceptions, contrivances and connections. Dynamics of Public Administration, 34(1), 86–101.
Umam, A. K. (2011). The Two Edge Knife of Decentralization. Jurnal Ilmu Sosial Dan Ilmu Politik, 15(1), 79–92.
Wadipalapa, R. P. (2017). Dari Desentralisasi Jaringan ke [De] sentralisasi Kuasa: Dinamika, Kekuatan dan Pukulan Balik. Jurnal ASPIKOM, 1(6), 465–476.
Wallner, J. M. (2009). Does Diversity Always Lead to Decentralization and Difference? APSA 2009 Toronto Meeting Paper.
Wijayanti, S. N. (2016). Hubungan antara pusat dan daerah dalam negara kesatuan Republik Indonesia berdasarkan Undang-Undang Nomor 23 Tahun 2014. Jurnal Media Hukum, 23(2), 186–199.
Wu, Y. (2023). A Literature Review of Local Government Competition. Frontiers in Business, Economics and Management, 8(1), 29–32.
Zhuravel, Y. V. (2008). Administrative and legal status of local self-government bodies. Extended Abstract of Candidate’s Thesis, Kyev.
In order to be accepted and published by Adabi : Journal Of Public Administration And Business author(s) submitting the article manuscript should complete all the review stages. By submitting the manuscript the author(s) agreed to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work. (See The Effect of Open Acces)
Similar Articles
- Rina Pentoria, Mercya Vaguita, Susiyanti Meilina, Management of Regional Revenue and Expenditure Budgets at the Regional Financial Management Agency , Adabi : Journal of Public Administration and Business: Vol. 10 No. 1 (2023): June 2023
- Rezi Syukriani, Suryadi Suryadi, Rizki Afri Mulia, Syamsir Syamsir, Handling Victims of Sexual Violence Against Children , Adabi : Journal of Public Administration and Business: Vol. 10 No. 2 (2023): December 2023
- Yumi Aryati, Khairuh Firdiawan, Syaiful Ardi, Sumartono Sumartono, Analysis of Factors Causing Hate Speech on Instagram social media in the Comments Column of Lambe Turah's Instagram Account , Adabi : Journal of Public Administration and Business: Vol. 11 No. 1 (2024): June 2024
- Reviandi Reviandi, Berian Hariadi, Rizki Afri Mulia, Susiyanti Meilina, Rianda Prima Putri, Implementation of the Indonesian Minister of Education and Culture Regulation Number 1 of 2021 Regarding the Admission of New Students , Adabi : Journal of Public Administration and Business: Vol. 11 No. 2 (2024): December 2024
- Andre Gunawan, Roni Ekha Putera, Aidinil Zetra, Natural Democracy of Minangkabau in the Era of West Sumatra Provincial Regulation Number 7 of 2018 concerning Nagari: Towards Consolidation? , Adabi : Journal of Public Administration and Business: Vol. 11 No. 2 (2024): December 2024
- Rika Septrizarty, Azmen Kahar, Nadia Angraini, Sharnuke Asrilsyak, Linkage of Customer Stewardship and Business Continuity in SME’s Post Pandemic using Marketing Mix 7P’s Analysis : Case Study of An Optical in Padang, Indonesia , Adabi : Journal of Public Administration and Business: Vol. 10 No. 2 (2023): December 2023
- Kenny Riva Ameliya, Jhon Rinaldo, D Lubis, The Influence of Emotional Intelligence, Intellectual Intelligence and Job Satisfaction on the Performance , Adabi : Journal of Public Administration and Business: Vol. 10 No. 1 (2023): June 2023
- Dodi Arnan, Rianda Prima Putri, Roselina Ahmad Saufi, Implementation of Regional Regulation Number 7 of 2018 concerning Guidelines for Management of Regional Property , Adabi : Journal of Public Administration and Business: Vol. 10 No. 2 (2023): December 2023
- Belli Yatra, Susiyanti Meilina, The Role of the Head of the Education Service Technical Implementation Unit (UPTD) in Improving Employee Performance in Sangir Batang Hari District, South Solok Regency , Adabi : Journal of Public Administration and Business: Vol. 10 No. 2 (2023): December 2023
You may also start an advanced similarity search for this article.
Most read articles by the same author(s)
- Ridwan Kurnia Rahim, Aldri Frinaldi, Lince Magriasti, Decentralization and Local Community Welfare: Analysis Based on Literature Studies , Adabi : Journal of Public Administration and Business: Vol. 11 No. 1 (2024): June 2024
- Aurelia Valentin Edward, Aldri Frinaldi, Implementation of Propemperda Policy in the Bukittinggi City DPRD Environment , Adabi : Journal of Public Administration and Business: Vol. 10 No. 2 (2023): December 2023
- Dana Mulanda, Aldri Frinaldi, Lince Magriasti, Decentralization and Public Participation: A Literature Review on Impact and Implementation , Adabi : Journal of Public Administration and Business: Vol. 11 No. 1 (2024): June 2024